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Two family properties in my name, need to buy own home - tax/mortgage implications?!

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  • RAS
    RAS Posts: 35,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Is there anyone to whom you can go right now to ensure you are not in when your brother comes round?

    As for helping you fill in the tax forms, I sure he will; just he will make sure they are never actually filed. Sorry - seen that dodge before.
    If you've have not made a mistake, you've made nothing
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    MobileSaver wrote: »
    It seems to me that it is the OP's brother who has been charging rent and so the saving grace is that there is no income tax worries for the OP.
    nice try but far too simple
    rental income is attributed to the owner of the property. The mere fact of who received the cash is not the basis of who was liable for the tax

    in the OP's case she could try for a claim of beneficial ownership which is where you try to show that she gave up her entitlement to the benefits of ownership and thus brother 1 is entitled to the rent and thus is liable. It can be hard to get HMRC to accept this
  • RAS
    RAS Posts: 35,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Star99 wrote: »
    Plus if I don't go back to work after maternity leave or only do part time, we can't apply for any help (i.e. tax credit) because it will appear I own two homes and I'm receiving income on one of them when I own nothing really and I'm receiving nada.

    Please get this absolutely straight - if your name is on the deeds as we think it is (as otherwise your signatures would not be needed), you own a flat. Not brother, you own the flat.

    You need the download from the Land Regsitry to be sure.
    If you've have not made a mistake, you've made nothing
  • Star99_2
    Star99_2 Posts: 37 Forumite
    Mojisola wrote: »
    It's worse than that because you probably also owe tax - on the money your brother has been taking from the tenants.

    Thanks for that reminder! :p
  • Star99_2
    Star99_2 Posts: 37 Forumite
    RAS wrote: »
    Please get this absolutely straight - if your name is on the deeds as we think it is (as otherwise your signatures would not be needed), you own a flat. Not brother, you own the flat.

    You need the download from the Land Regsitry to be sure.

    The flat is in my name, I know that much as my brother didn't want it in his name.
    I just went on to the Land Registry website only to realise I don't even know the address of the flat. Will definitely request all the paperwork from my brother.
    Should I tell him I will be seeing a solicitor and an accountant for advice?
  • RAS
    RAS Posts: 35,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Star99 wrote: »
    Should I tell him I will be seeing a solicitor and an accountant for advice?

    NO, NO, no.

    Tell him you want a copy of the rental agreement.
    If you've have not made a mistake, you've made nothing
  • Star99_2
    Star99_2 Posts: 37 Forumite
    RAS wrote: »
    NO, NO, no.

    Tell him you want a copy of the rental agreement.

    What else should I ask for as I want to see a solicitor and accountant for some much needed advice it seems and want to have all the necessary paperwork as I don't have anything.
  • RAS
    RAS Posts: 35,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you have the rental agreement then you know what the address is and who the legal landlord is. It will also tell you how much the rent is and how long the tenants have been there, so you can estimate the tax liability.

    Download the Land Registry details tomorrow.

    Go onto the Tenancy Deposit scheme web-sites and find out if the deposit has been registered

    Maybe also check the electoral rolls for the flat as well. Previous tenants may have registered?
    If you've have not made a mistake, you've made nothing
  • RAS
    RAS Posts: 35,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    PS - do you have the copy of the mortgage agreement for mum's house?

    The one good thing about them not paying you rent is that you may find it easier to get them out if you need to (take advice here).
    If you've have not made a mistake, you've made nothing
  • Star99_2
    Star99_2 Posts: 37 Forumite
    RAS wrote: »
    PS - do you have the copy of the mortgage agreement for mum's house?

    The one good thing about them not paying you rent is that you may find it easier to get them out if you need to (take advice here).

    I believe I do. But I will definitely check later.
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